Tesla's $7 Billion Legal Fee Battle Over Musk's Pay Package

A Delaware judge heard arguments over a record $7 billion in legal fees for three firms that challenged Elon Musk's $56 billion Tesla pay package. Shareholder Richard Tornetta's lawyers argue the fees incentivize holding corporate boards accountable, while Tesla's attorney contends the request is excessive.

A Delaware judge on Monday heard arguments over a record $7 billion in attorneys' fees for three law firms that successfully challenged Elon Musk's $56 billion Tesla pay package, sparking a debate over the accountability of corporate boards.

For over six hours, legal teams debated how much should be awarded to firms representing shareholder Richard Tornetta, who sued over Musk's pay in 2018. Tornetta's attorneys argued the fees represent a fraction of the created value for Tesla following a January ruling that rescinded Musk's pay package.

Tesla's attorney, John Reed, countered that the fee request is exorbitant and has only caused uncertainty for Tesla. The final decision on the fees could take weeks or months and may be influenced by another fee ruling in a Dell Technologies case.

(With inputs from agencies.)